Plasma Panels to Peak in 2008

Sales of Plasma Display Panels (PDP) likely will peak in 2008, and manufacturers of PDPs could see their market and revenue shares drop, largely due to intense competition from Liquid Crystal Displays, according to new research from iSuppli Corp.

“The PDP market encountered tightness in supply in the first quarter due to factors, including panel makers scaling back production,” iSuppli TV systems analyst Riddhi Patel said. “For plasma manufacturers to continue to be successful in the market, they must weather the storm of LCDs while focusing consumer interest on PDP's attractive form factors and reasonable prices.”

Average sale prices of PDPs are allowing that segment of the market to grow, according to iSuppli, but due to increased competition driving down prices, declining costs for display materials, and big competition from LCD and microdisplay-based rear-projection technologies, that growth will be short-lived.

Global PDP revenue is expected to hit $8.6 billion this year, up 11.8 % from 2006, largely due to increased market shares from Korean manufacturers, according to iSuppli. Yet after a projected 18.5% jump in 2008 to $10.2 billion (largely thanks to more oversize TVs 50-inches and larger), PDP global sales will drop back down to $8.7 billion by 2011.